Micro Lending Market Analysis

Provider (Banks, Micro Finance Institutes (MFIs), NBFCs (Non-banking Financial Institutions))

Banks segment is likely to dominate over 55.1% micro lending market share by 2036, on account of the expansion in banking services, along with increasing collaborations of banks with other micro lending service providers. For instance, in 2022, the Asian Development Bank (ADB) and HSBC India (HSBC) agreed to develop a USD 100 million partial guarantee program to serve over 400,000 micro-borrowers and largely women-owned microenterprises across India.  Moreover, expanded banks can utilize their extensive data and sophisticated risk management systems to better assess and mitigate the risks associated with micro lending. This improves the overall sustainability and reliability of micro lending programs.

In addition, the global demand for peer-to-peer lending a type of crowdsourcing where loans are raised and repaid with interest is anticipated to fuel the microfinance institutes (MFIs) segment's expansion. P2P lending is seeing a rise in demand from small and medium-sized enterprises as well as in a variety of industries, including real estate and student loans.

End-users (Solo Entrepreneurs & Individuals, Micro, Small and Medium Enterprises)

The micro, small, and medium enterprises segment in micro lending market is projected to generate significant revenue in the coming years. This segment expansion is dominated by the growing number of SMEs that have extremely restricted access to credit facilities, deposits, and other forms of financial assistance. Particularly, in 2021, there were projected to be more than 330 million SMEs globally. Small and medium-sized enterprises (SMEs) are gaining more attention as a viable alternative to microcredit investment in the fight against poverty. These firms frequently require easier access to capital, hence micro lending plays a significant part in their funding to help these businesses get established, grow, and flourish. In developing and transitional nations, microfinance is seen as an essential instrument for expanding small businesses since it promotes the creation of new business models and assists in building economic infrastructure. For instance, small sums of money, usually between USD 4,000 and USD 48,000, are lent by microloan lenders to business owners who are unable to obtain operating capital from credit cards or other traditional financial institutions.

However, the share for solo entrepreneurs & individuals will also experience considerable development during the forecast period. Micro lending might assist solopreneurs with profitable opportunities and aid in launching new projects.

Our in-depth analysis of the global market includes the following segments: